Mary Grace McCormick, Credit Writer
@mg_mccormick
To settle credit card debt with Chase, start by figuring out whether Chase or a collection agency will negotiate your debt. If the account is in good standing or less than 180 days delinquent, you will negotiate a settlement with Chase. Chase will try to get you to pursue a debt management plan rather than settle, but may agree to a settlement if you present your case appropriately. If your account is more than 180 days delinquent, you will most likely negotiate with a collection agency, rather than Chase.
Regardless of whom you negotiate with, make sure the party involved understands why you believe that debt settlement is your best option. Additionally, make sure you do the math on debt settlement: It should save you money, even after factoring in fees and taxes. Finally, make sure you get all terms in writing.
How to Settle Chase Credit Card Debt:
- Decide if you want to pursue do-it-yourself debt settlement or hire a debt settlement company to negotiate on your behalf.
- Rehearse your conversation (if you’re doing the negotiating). Think about answers to questions about your income, your typical expenses, and the situation that caused your inability to pay.
- Reach out to Chase customer service at 1 (800) 935-9935 (if they are handling your debt). Otherwise, contact the collection company handling your case.
- Decide if you want to pursue the debt management plan Chase will most likely offer in lieu of debt settlement.
- Make a settlement offer. Factor in fees from your debt settlement company (if using one) and federal tax on the forgiven portion of your debt. You should still come out ahead. You can typically expect to settle Chase debt for between 25% and 60% of the balance.
- Get your agreement in writing through a signed debt settlement letter.
Your credit score will take a hit once the debt settlement has been reflected, but you can counteract this drop by practicing good financial habits. Create a budget that allows you to live within your means and pay your bills on time every month. Depending on your credit history, you can expect your credit to rebound in 12 – 24 months. You can track your credit score and get personalized credit improvement advice by signing up for a free WalletHub account.
People also ask
How much will a credit card company settle for?
A credit card company will settle for anywhere between 30%-80% of the balance owed. Credit card companies tend not to publicize settlements, so there are no hard statistics on success rates or settlement amounts. However, a creditor won’t accept less than you owe if they have reason to believe you’re capable of paying the full amount.
Key Facts About Credit Card Settlements
- Credit card companies are most likely to consider debt settlement...
What are the pros and cons of debt settlement?
The biggest pros of debt settlement are reducing the balance owed and avoiding bankruptcy. The biggest cons of debt settlement are credit score damage, the risk of creditors refusing to settle, and the threat of a lawsuit. In most cases, the cons of debt settlement outweigh the pros. The risks that come with debt settlement are incredibly high, and even if they can be avoided, the chances of a successful settlement are about 10%.
Alternatives...
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Hi! This article was very helpful!! I'm currently working on a negotiation script based on research of settling my credit card debt. I have a Chase Freedom CC with a 8.25k limit. I have hit the limit. Here are some facts about my situation: - I've had the card since Oct 2018, 2k limit - For the first 6 months I paid my bill on time, in full - Chase increased my limit w/o my consent to 8.25k - I moved and due to bad budgeting/low income I racked up a CC debt, but always made payments around the $1k - I have never missed a payment or paid late - I've hit my max, I'm recently unemployed due to Covid-19 - I recently received a settlement from a car accident I was in and want to try to pay the balance in full. - I would like to settle for as small as possible so that I can have some savings during this time, pay off the debt, and go back to using this card in a healthy way When writing my negotiation for whoever I speak to at Chase, is it good to include this information? And how do I decide what number to begin with? Your post says some will settle for as low as 25%, should I start there? I'm writing this out in hopes that you can help, but I understand that I'm asking a lot, but wanted to check! Thank you!!!
Hi this is soo helpful!! Thank you!!